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Bitcoin surpasses $80,000 amid record short squeeze and ETF inflows
Bitcoin has reclaimed the $80,000 level, marking its first trade above this threshold since mid-May. This rally, which saw weekly gains of approximately 22% to 27%, was significantly fueled by a record short squeeze that liquidated over $3 billion in bearish positions in a single day on August 20.
Institutional demand has played a critical role, with U.S. spot Bitcoin and Ethereum ETFs attracting roughly $2.6 billion in net inflows during the week of August 17-21. Bitcoin-related products alone saw $1.92 billion in net inflows. Additionally, the U.S. Treasury's decision to expand its long-end liquidity-support bond buyback program has contributed to increased market liquidity and lower yields, nudging investors toward risk assets.
Ethereum has also experienced a strong recovery, rising nearly 31% over the past week to trade around $2,500. This surge was supported by $697 million in net inflows into U.S. spot Ethereum ETFs. Notably, Bitmine Immersion Technologies increased its holdings by purchasing approximately $81 million worth of ETH, bringing its total to roughly 4.8% of the circulating supply.
Despite the momentum, analysts warn of potential pullbacks due to overbought technical indicators, such as the Relative Strength Index (RSI). Furthermore, market participants are closely monitoring the Bank of Japan, as expectations for a potential interest rate hike in September could introduce volatility into global markets.
Entities
Arthur Hayes · Bank of Japan · Binance · BitMEX · Bitcoin · Bitmine Immersion Technologies · BlackRock · Coinglass · Ethereum · Federal Reserve · U.S. Treasury · Uniswap
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Bitcoin futures open interest reached approximately $58 billion. news.bitcoin.com
- [○ 1 SOURCE] Markets are betting on a Bank of Japan interest rate hike in September. bitcoinethereumnews.com
- [● 2 SOURCES] Short liquidations surpassed $220 million in 24 hours bitnewsbot.com · www.cryptobreaking.com
- [● 3 SOURCES] The Crypto Fear and Greed Index was at 73. bitcoinethereumnews.com
- [● 4 SOURCES] Bitcoin crossed $80,000 for the first time since mid-May bitnewsbot.com · www.cryptobreaking.com · cryptobriefing.com
- [● 3 SOURCES] Ethereum has seen its fortunes take a turn for the better as it has risen by nearly 31% www.cryptopolitan.com · dmarketforces.com · themarketperiodical.com
- [○ 1 SOURCE] exchange open interest raced toward $58 billion news.bitcoin.com
- [● 3 SOURCES] Crypto Fear and Greed Index sitting at 73 in the greed zone bitcoinethereumnews.com
- [○ 1 SOURCE] Overnight-index swaps were pricing in around an 82% probability bitcoinethereumnews.com
- [○ 1 SOURCE] The altcoin season index was at 43, which is below the threshold for an altseason. www.cryptopolitan.com
- [● 3 SOURCES] Bitcoin-related products saw $1.92 billion in net inflows during the previous week. www.cnnbrasil.com.br · bpmoney.com.br · cryptobriefing.com
- [○ 1 SOURCE] Bitmine Immersion Technologies purchased approximately $81 million worth of Ethereum last week. dmarketforces.com